Partner Identification & Strategic Supply Chain Analysis for Global Fashion Brand
The client, a global fashion brand based in the Nordics, had been present on the Chinese market during the last decade. However, their Asian operations had been run by a third-party, handling both the physical and online stores, as well as the distribution.
Now, the client set out to enter the Chinese market by themselves and turned to ARC Consulting for help with identifying the best suitable Chinese distribution partner and developing a supply chain strategy. The aim of the project was to identify the best partner based on variables such as strategic geographic location, fashion experience, distribution capabilities and costs. Additionally, the study also included a comprehensive overview of the Chinese logistical landscape, a benchmark study of industry peers and a supply chain setup- analysis.
By entering the Chinese market by themselves, the client not only re-gain full control distribution and sales in China, but also get full control of marketing, branding and expansion planning, which before were being handled by the partner. Further, the client also gets full access to all distribution and sales data, enabling a deeper level of internal data analysis, which previously has been fully outsourced.
ARC Consulting initiated the process with an internal as-is-analysis, gathering production, logistics and shipping data to understand the challenges and requirements of the client. Based on the information and the client’s needs, ARC Consulting conducted a partner evaluation and identification of the best suitable candidates. The partner evaluation consisted of multiple steps, including several quotation rounds, cost analysis and detailed business model alignment reviews together with our client.
In parallel, ARC Consulting conducted a strategic review of the Chinese logistical landscape, as well as a benchmark study of five industry peers and their logistical setup in China, identifying their warehousing network, omni-channel capabilities and logistical partners.
ARC Consulting provided the client with a comprehensive report, presenting a short list of the best suited distribution partner alternatives, as well as giving the client a thorough overview of the Chinese logistical landscape with valuable insights. The report also laid out the supply chain setup required to offer the highly digital Chinese consumer a great customer experience throughout all channels.
The study also illustrated how industry peers are conducting their logistical operations in China, identifying how our client could exceed their competitors’ offerings on the Chinese fashion market.